A brace of former Glencore and Goldman Sachs commodities traders have launched an oil and agriculture-focused hedge fund, as the market improves for the sector.

Founded in 2013, Tulos Capital launched to outside investors in February 2014. Led by Paul Schurman and Patrik Sundberg, the fund aims to raise around $500 million over the next few years. An event driven and volatility trading hedge fund, it will focus primarily on trading in agricultural commodities and oil, with options to expand into other sectors.

Schurman, chief investment officer, was previously global head of oil derivatives at Glencore. He left in late 2012.

Before joining Glencore in July 2010, Schurman spent a year at hedge fund Millennium. Before that, he spent eight years Goldman Sachs. Made managing director in 2006, he traded oil derivatives, and headed up the commodities trading desk in Tokyo.

Sundberg joined Glencore with Schurman, having trod a similar path at Millennium and Goldman Sachs after joining the Wall Street bank in 2005.

Hoss Hauksson, who formerly managed trading, structuring and middle office teams for structured products at the Cantonal Bank of Zurich, is the fund's chief operating officer and head of risk.

The launch of Tulos comes during a more favourable time for commodities hedge funds after a chaotic 2013.

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However, agriculture funds are posting double digit returns over the first quarter The AQR Risk-Balanced Commodities Strategy Fund was up 10.74%, and the Prim Agriculture fund up 10%, according to data from Lipper Global.